MON Protocol Stands Out as a Potential Outperformer

Gaming tokens have been in a brutal downtrend, with many projects struggling to sustain momentum amid weak market conditions. However, periods of max

In the realm of gaming tokens, a brutal downtrend has unfolded, leaving many projects struggling to sustain momentum amid weak market conditions. However, periods of max fear often present the best opportunities, especially for projects with strong fundamentals and enough funding to sustain market downturns. Despite its price decline, MON Protocol stands out with its large treasury, proven team, softening vesting schedule, and continued, transparent progress over the last 18 months.

Launching with massive hype at a $400M FDV, the MON token has since dropped to a $25M FDV over the last 10 months. During this time, the team has drastically narrowed its focus, choosing to prioritize the development of its flagship game, Warden’s Ascent, drive value across the MON Protocol, and test the mini-game waters with two outsourced projects. Backed by a $35M+ cash treasury and a burn rate low enough to sustain them past 2028, they have the luxury of being able to prioritize Web2 growth over the much more niche Web3 total addressable market (TAM) that comes with additional baggage and expectation debt.

At the outset of 2024, there was a dearth of liquid gaming tokens available for investment, leading to a frenzied demand for any projects that offered it. However, as we advance into the latter half of 2024, a substantial number of tokens have become liquid, providing ample investment opportunities.

In this report, we’ll further explore the current state of the IP, Warden’s Ascent’s progress, MON Protocol’s broader ambitions to expand its IP beyond gaming and Web3, and ultimately why MON looks compelling at these levels.

A Bet Across Gaming

MON Protocol has one of the most unique staking mechanisms in Web3 gaming. The team leveraged its early questing platform to secure token allocations – typically between 0.1% and 0.5% at TGE – from over 100 projects in exchange for user engagement.

Currently, 11.5% of MON’s supply is staked, translating to approximately $3.3M at today’s prices. So far, over $7M in rewards have been distributed to stakers via 36 projects, with 65+ partners yet to TGE, setting up a continuous stream of TGE’s driving value to stakers.

Consequently, at current prices and staking participation, rewards from 36 partner projects have already generated a 210% return. However, it is important to note that the average staker’s entry price remains – sometimes significantly – higher than the current 25M FDV, as MON is down roughly 90% from its peak.

This model allows MON holders to gain exposure to a broad range of exciting gaming projects, such as Project O, KGen, and Avalon. As more of these games launch, MON’s staking ecosystem could increasingly serve as a proxy bet on the broader gaming sector.

Liquid Tokens are Increasingly Attractive

Interest in Web3 gaming peaked in early 2024 and has been steadily declining since. While investors previously had to chase exposure through overly expensive pre-TGE rounds or inflated liquid token valuations, the landscape has now shifted.

A handful of well-capitalized teams like Ronin, Mythical, Open Loot, and MON Protocol have now had their tokens live for months, offering accessible entry points for those interested in the space. In essence, periods of max fear often present the best opportunities, especially when a project boasts strong fundamentals and sufficient funding to endure market downturns.

Despite its price decline, MON Protocol stands out with its large treasury, proven team, softening vesting schedule, and continued, transparent progress over the last 18 months. Launching with massive hype at a $400M FDV, the MON token has since dropped to a $25M FDV over the last 10 months.

During this time, the team has drastically narrowed its focus, choosing to prioritize the development of its flagship game, Warden’s Ascent, drive value across the MON Protocol, and test the mini-game waters with two outsourced projects. Backed by a $35M+ cash treasury and a burn rate low enough to sustain them past 2028, they have the luxury of being able to prioritize Web2 growth over the much more niche Web3 TAM that comes with additional baggage and expectation debt.